(Reuters) – Shares of Clover Health Investments Corp jumped 18% and were on track to reach an all-time high on Wednesday, with individual traders on online discussion forums pumping up the stock the day after sending them around 86%.
Medicare-backed insurance retailer Clover Health is a new favorite of retailers who have previously sent shares to GameStop Corp. and AMC Entertainment Holdings, rising through social media channels such as Reddit’s WallStreetBets.
On the trading-focused site Stocktwits, the volume of messages related to Clover Health has more than doubled and 95.4% of the messages reflect a positive attitude towards the severely shortened stocks.
Clover Health was also among the most traded stocks in the pre-market after registering the largest trading volume on US stock exchanges on Tuesday.
Among other “meme stocks,”
Lordstown Motors Corp fell 1.4 percent after falling 16.3 percent on Tuesday, triggered by a warning about a going concern.
The recent jump in some memes has prompted some hedge funds to use options to bet against them, while limiting risk while seeking to avoid the fate of Melvin Capital, which was hit hard after betting against GameStop earlier this year.
Shares of Clover rose about 32% year-over-year in the last close, with the Reddit-driven jump of 190% this month offsetting low returns earlier in the year.
(Report by Sagarika Jaisinghani and Aaron Saldanha in Bengaluru; Edited by Sriraj Kalluvila)